Msida primary school is to be demolished and replaced by a bigger school within two years, the Ministry of Education said.
The new school will cater for 300 pupils and will have sports facilities, a hall, childcare facilities, air conditioning and underground car parking.
While building works are underway, classes will be held in a building adjoining Sta Venera school. Transport will be provided.
The ministry pointed out that 17 primary school buildings are more than 100 years old and no longer suitable for current needs. Msida school is one of them.
Plans for major works in other schools will be announced shortly.
New schools are currently being built in Marsaskala and Qawra and there are plans for a new school in Victoria, Gozo.
Extensions will be made at Ħal Ghaxaq, Ħal Lija, Attard, Rabat (Malta), and Mellieħa.
The Visual and Performing Arts School in Ħamrun opens next month.